BloombergNEF Predicts Surging EV Sales Though Addi

BloombergNEF Predicts Surging EV Sales Though Additional Policy Action Is Needed

Despite all we have achieved over the last century due to the internal combustion engine, vehicles powered by this technology are also responsible for a large percentage of global carbon emissions. Consequently, most countries have pledged to replace internal combustion engine (“ICE”) vehicles with zero-emission electric cars in a bid to achieve net-zero emissions by 2050. Rather than “dirty” fossil fuels, electric vehicles (“EVs”) are powered by rechargeable lithium-ion batteries and, theoretically, making them our primary modes of transportation could cut carbon emissions by a wide margin.

The EV industry is barely a decade old and makes up less than 2% of global vehicle sales, but according to research company BloombergNEF, electric vehicle sales are going to increase exponentially within the next few decades. The caveat is that the nascent industry will need additional policy action in a wide variety of sectors, especially if we wish to meet green energy goals within the designated timeline.

BloombergNEF’s annual Electric Vehicle Outlook (“EVO”) states that this will cover everything from investing in public charging infrastructure, battery recycling, and EV grants and subsidies to creating new regulations for heavy trucks and encouraging other modes of transport such as cycling or walking.

The annual EVO analyzed what it would take to cut global emissions until they were at par with 2050 projections, and it found that without additional policies, the number of electric vehicles would increase exponentially on the roads over the next two decades. Zero-emission vehicles would increase from 4% to 70% by 2040, electric buses would rise to 83%, electrified light commercial vehicles would increase from 1% in 2020 to 60%, while medium and heavy commercial vehicles would go from almost 0 to a little over 30%.

Although these numbers are impressive, they are just shy of what most countries would like to achieve by 2050, and government support will be instrumental in reaching this goal. The heavy commercial truck segment especially will need policy support, says commercial transport team lead at BloombergNEF Nikolas Soulopoulos.

On top of more stringent carbon emission standards and tighter fuel economy, the decarbonization of heavy commercial fleets is something governments may have to consider, he says. Making smaller trucks, which are much easier to electrify, more attractive for transporting freight by introducing incentives would also be a good idea.

To support mass electric vehicle adoption, the global network of charging stations will need 509 million chargers by 2040 at a total cost of $939 billion. Global electricity production would have to go up by 25% by 2050 to meet the increased demand for power. Additionally, battery recycling will be crucial to efforts to beef up the supply of the rare metals used to produce lithium-ion batteries and to prevent dead batteries from polluting the environment.

So while the electric vehicle sector is poised for major growth, extra policy support will ensure ancillary sectors that prop it up grow as well and make 2050 green energy projections more achievable.

With companies such as Net Element (NASDAQ: NETE) joining the EV sector, a lot is going to happen fast, and the innovations could accelerate EV adoption among members of the public.

NOTE TO INVESTORS: The latest news and updates relating to Net Element (NASDAQ: NETE) are available in the company’s newsroom at http://ibn.fm/NETE

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